Market Wrap: Bitcoin Dips to $10.1K, Ether Drops to $330 on Sell-Off Session

Bitcoin and ether both dropped Monday as global markets conducted a selling session.

  • Bitcoin (BTC) trading around $10,492 as of 20:00 UTC (4 p.m. EDT). Slipping 3.6% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $10,179-$10,994.
  • BTC below its 10-day and 50-day moving averages, a bearish signal for market technicians.

btcsep21
Bitcoin trading on Coinbase since September 19.
Source: TradingView

Bitcoin price fell sharply Monday, with a lengthy sell-off session starting around 07:00 UTC (12:00 a.m. EDT) and dropping to as low as $10,179 on spot exchanges such as Coinbase before gaining to $10,492 as of press time.

“The market is still positioned short with persistent negative funding over the past month and under-allocation to BTC,” said Cindy Leow, portfolio manager for 256 Capital Partners, a market-neutral trading firm. ”At this stage, sellers are still in control of the market.”

As bitcoin tumbled Monday, sell liquidations on derivatives exchange BitMEX picked up, putting pressure on price. In fact, over the past 24 hours, BitMEX liquidated over $34 million in long positions, the crypto equivalent of a margin call.

skew_bitmex_xbtusd_liquidations-39
Liquidations on derivatives exchange BitMEX the past 24 hours.
Source: Skew

Darius Sit of crypto quant trading firm QCP Capital said the global equities markets are not faring well to start the week. “Stocks are getting hit,” Sit said. indeed, major indexes are all in the red Monday:

Michael Rabkin, of crypto liquidity and market making firm DV Chain, said markets across the board are in “risk-off” mode, when asset holders unload for safer investments in the face of broader economic tumult. “Governments continue to print money and questions are left unanswered due to covid,” said Rabkin. “We’re seeing risk-off across all the markets right now which is having a direct effect on crypto.”

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